President Donald Trump's inner circle sees big business potential in Moscow, but seasoned U.S. investors say doing business in Vladimir Putin's Russia is still dangerous, reports
the Wall Street Journal.

Trump's special envoy Steve Witkoff and adviser and son-in-law Jared Kushner see Russia as a country with vast natural resources and potential business opportunities and believe Russia's return to the global economy could bring profits to U.S. investors.

But Russia's weak economy, dictatorial regime, and lack of rule of law make any investment too risky, according to investors.

"The size of the prize is smaller than some people think," Charles Hecker, a geopolitical risk analyst who spent four decades working in the Soviet Union and Russia, told the Journal.

"Russia is not the Emerald City or El Dorado."

Nearly a year into Trump's second term, Kushner has returned to the foreign policy arena and is taking a greater role in delicate peace negotiations.

Talks had initially been led almost solo by Witkoff, a real estate mogul who had no government experience before this year.

Recently, Kushner and Witkoff took part in a diplomatic blitz in Miami, holding talks with Russian negotiator Kirill Dmitriev on the latest proposals to end Russia's war in Ukraine.

Hecker, author of "Zero Sum: The Arc of International Business in Russia," said a Ukraine settlement wouldn't end Russia's recurring hostility toward the West, leaving foreign firms stuck with ongoing geopolitical uncertainty.

"The general animus of Russia towards the West will stay as long as Putin is in the Kremlin and arguably even longer," he said.

"It's unwise to assume that now, all of a sudden, the red carpet comes out for Western companies."

Alexandra Prokopenko, a former Russian central bank official who is now a fellow at the Carnegie Russia Eurasia Center in Berlin, told the Journal Russia is still "uninvestable" for "any ordinary foreign investor."

"The notion of companies flocking back to Russia is empty talk," she told the Journal.

Michael Calvey, chairman of private-equity firm Baring Ventures, who worked as a financier in Russia for three decades, said he wouldn't be surprised "if companies moved to secure an option to access" unique assets in Russia, "such as extraordinary gas fields in the Arctic."

"But I'd be surprised if anyone starts sinking billions into real investments for years," he added.

Russia's economy is weak — about $2.5 trillion, roughly comparable to Italy — and has poor growth prospects, a shrinking population, and declining recoverable oil reserves.

Alan Bigman, former CFO of Russian oil producer TNK, told the news outlet it makes sense to do business only with a "nonaggressive" Russia.

"But not at a time when they're invading and threatening their neighbors," he said.

• Putin-Fired Russian General Dies Suddenly on Christmas
• Report: US Researchers Identify Likely Belarus Site for New Russian Nuclear Missile